By Ngozi Onyeakusi—The National Insurance Commission (NAICOM) has advocated the need for incorporating insurance as an integral part of financial plans of individual, entities and businesses.

The Commissioner for Insurance, Mr Thomas Sunday made the call at the Chartered Insurance Institute of Nigeria (CIIN) 2023 Business Outlook Conference with the theme “Reshaping the Financial Sector: Emergent Challenges and Opportunities” held today in Lagos .

He noted that Insurance should take the first place in peoples Financial Planning owing to the crucial role it plays.

According to him, Insurance as a risk mitigation tool prepares everyone for unforeseen circumstances and losses instead of enhancing unexpected borrowings.

He therefore charged Insurance Companies to take rightful place by not just supporting only from the back end but take the lead in financial planning of customers.

This, he said would increase understanding of the Customers’ businesses and further the course and boost the financial status of insureds.
Sunday called on the insurers to come up with the right products

“It is the deep understanding of the Customers’ businesses that aids Insurers to gain insight into the financial status of the Customers thereby helping to market the right product, rather than struggling to Sell what had been produced. That is, “Develop Product that could be Sold” but do not “Try to Sell what had been Produced”, he saida.

He noted that insurance industry have been exposed to the direction of the Government through the 2023 Budget and the focused Industries and as well as strategic expenditures that could enhance the Insurers’ prioritized markets for appropriate products that will ensure that insurance is seen in every line item of the budget.
The growth of an economy on a long-run basis, he said was linked with activities of the insurance market.

Speaking further, Sunday said borrowing from the research work of Abdullatif Alhassan and Nicholas Biekpe in exploring Causality Analysis, their findings revealed that insurance market development in economies that experiences supply-leading hypothesis is important for stimulating economic growth.

He noted that the Nigerian Insurance Industry has the potential to be a major driver of advancing national development through freeing Government dwindling resources usually deployed to mitigate losses to citizens arising from fundamental risks and catastrophic events.

It is expected that the ongoing development of the Insurance Industry 10 year development plan will be unveiled in the first half of the year for structured and inclusive growth of the insurance sector. he assured.
Sunday called on the industry players to come up with innovative products and improving technical capacity of its staff among others.

  • “Whilst the National Insurance Commission is deeply desirous to create a conducive environment that will support the Insurance Market in maximizing  investment in the sector, there must be deliberate policy of introducing innovative products and improving technical capacity of its staff among others.
    It is expected that the Nigerian insurance industry will reciprocate with efficient service delivery, we are by this platform also encouraging few others, that are yet to fully adopt the benefits of innovative new technologies, to do all that they can and catch-up” adding that innovations and technologies will subsequently define the future of the Sector.